Phil Hawkins, president and CEO of DCT Industrial Trust (NYSE: DCT), joined REIT.com for a video interview at REITWeek 2017: NAREIT’s Investor Forum at the New York Hilton Midtown.
Hawkins offered his assessment of industrial real estate market fundamentals, including demand for space.
“Demand is really as positive as people read about,” he said. “As I think about the psychology within our own company, I think the confidence in demand is as high, or higher, than it was a year ago.”
The strong demand for space signals ongoing rent growth in the industrial sector, according to Hawkins. He added that the supply of space is “rational.”
Discussing the equilibrium between supply and demand for space, Hawkins said he focuses more on the demand side of the equation.
“To me, equilibrium where supply equals demand—where you have strong demand and low vacancy rates—is a very healthy environment to be in,” Hawkins said. “That’s one we expect to continue from what we can see as far out into the future as we can.”
Regarding the significance of DCT’s involvement in the communities in which it does business, Hawkins noted that the company “is changing the economic environment” where it develops properties. DCT adds value to these locations, “sites that have some problem that needs to be solved,” he said.
“Our organization is up to that challenge to figure out the solution,” he said, “and we’ve got the patience and the capital to do that.”